Saab Production Halted Due to Lack of Money

It has been nearly two years since National Electric Vehicle Sweden rescued Saab from bankruptcy, but it looks like the brand still hasn't found its way yet.The new parent company of Saab has temporarily stopped production on Saab cars as cash runs out. Its plant in Trollhattan, Sweden will remain idle for four weeks starting this Thursday, and some staff members will leave."The root cause of the current situation is that one of NEVS’ investors has not fulfilled their contractual obligation to finance the operations," NEVS said in a statement this week. Qingbo Investment Co., which has a 22 percent stake in NEVS, has not yet fulfilled its financial commitment, the automaker said.After NEVS rescued Saab from bankruptcy, the company promised to build electric versions of an old Saab model. It plans on selling the cars in China to help promote green technology in the region. Before production was suspended, the company was able to produce six cars a day.Luckily, NEVS said its financial problems are temporary and that its assets are "significantly higher" than the debt it owes. Moving forward, NEVS also said it will partner with a major global carmaker to develop a new vehicle platform on the Phoenix architecture. Co-developing this platform with another manufacturer will help the company reduce costs when producing future cars.Source: National Electric Vehicle Sweden, Reuters

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